We examine the effect of strategic sale—the sale of banks to strategic foreign investors—on banks’ performance. The Government of Indonesia implemented such a policy as a part of bank restructuring in the aftermath of the 1998 banking crisis. Using difference-in-difference models, we find...

We analyze an interaction between a firm’s choice of organizational structure and competition in the product-market. Two organizational structures are considered, namely a centralized-organization, whereby formal authority is retained by a principal, and a decentralized-organization, whereby...

This paper provides an empirical explanation to the observed disparity in cross-border M&A inflows to developing and developed countries over the last two decades. We show two main results. First, the disparity can be attributed to the difference in the quality of institutions between the two...

In educating students national public school systems use different methods of grouping students by ability across schools. We consider four different school systems of student allocation at different stages of schooling and their educational implications. Our two-period model suggests that both...

How students should be allocated to schools to achieve educational goals is one of important debates on the construction of school systems. Promoters of comprehensive and selective school systems fail to reach a consensus on implications of each system for efficiency and equity of education....

Extending Krugman (1991)'s economic geography model, this paper examines a stability of an industrial structure resulting from production shifting-in effect of a formation of regional trade agreements. This paper claims that non-higher external trade costs against non-member countries may need...

This paper examines the welfare implications of an existence of free trade agreements (FTAs) and customs unions (CUs) in the GATT system, in the presence of cross-foreign ownership among countries. In particular, two GATT regimes are analyzed: a pure GATT regime without any regional free trade...

This paper investigates the welfare implications of an existence of a free trade agreement (FTA) and a customs union (CU) within the GATT. Two types of GATT regimes are considered in a completely symmetric world: a pure GATT regime without any type of the regional trade agreements (RTAs), and a...